De Grey launches $600m equity raising for Hemi Gold Project
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The news: Gold miner De Grey Mining has launched a $600 million equity raising to help finance its Hemi Gold Project in the Pilbara region of Western Australia.
The numbers: De Grey plans to raise $600 million from investors via an institutional placement of $344 million and a retail offer of up to $256 million. New shares will be issued at $1.10, a 13% discount to the last closing price of $1.26.
The context: The Perth-based company said that in combination with existing cash on hand, proceeds from the new equity raising are expected to fully fund the equity component of its Hemi Gold Project financing, representing a "material de-risking milestone" for the project's development.
It noted that the equity raising will allow for more effective planning and management of its capital works plan, including the near-term ordering of additional long-lead items and major contractor appointments.
What they said: De Grey managing director Glenn Jardine said: "The underwritten equity raising represents a landmark milestone and a key de-risking event for De Grey."
"The significant level of support received from key stakeholders to date provides strong validation of the high-quality nature of Hemi and our strategy of becoming a material Australian gold producer," he said.
The source: ASX announcement
